(opps, previously posted before it was fully composed)
Only savvy traders should be playing this pop IMO. Lance Berger mentioned he would own e.Digital stock on the Hot Stock Chat radio program and a number of swing traders on these boards have been watching it for a break-out.
Remember that as of the last 10Q there were still over 11 million remaining shortable shares available to the holders of the Series D and E convertible preferred shares. This high volume run gives them a great opportunity to short and then later convert (to cover) at their current sub $0.19 conversion price. They would like to see the run go as high and long as possible.
Additionally, although some think the "coverage" initiated by The Bellwether Report yesterday is a sign of institutional interest and a real expectation of an increasing share price. These "coverage" reports sound like legitimate stock analyst coverage, but are not. However people fall for them because they create a self-fulfilling prophecy driving the PPS up.
In reality it is an offshore hedge fund "incorporated under and pursuant to the laws of the Netherlands Antilles" (i.e. it is not subject to US laws or taxation). Its website was registered just 3 months ago by a professional domain proxy that uses a PO box in AZ as its address. Certainly not a transparent organization.
They disclose in the announcement that they "may receive compensation in cash or shares from independent third parties or from the companies mentioned." They may be paid to promote EDIG stock.
They also disclose that their "affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value."
These promotional "coverage" announcements are understood by professional traders for what they are, essentially an orchestrated pump and dump. The traders don't create the pump (the promoter does), but they know how to ride the wave and help create the self-fulfilling prophecy of an increase in share price. Those who buy into the run when the savvy traders, promoters and shorts (such as CP holders) are selling often end up as bagholders.
This is something that those who buy OTCBB stocks as long term investments should understand. You will always be able to buy it for less when the run is over.
News 
Market Data 
Discover 
